CBS (CBS) surged $4.08 to $42.02 after the media company said late Wednesday that it was converting its U.S. outdoor advertising business to a real estate investment trust and selling the international portion of the business.

In encouraging signs for the labor and housing sectors, data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while residential construction jumped in December.

"It reminds us that although the situation on the job front hasn't improved significantly, slowly but surely it is getting better," said Andres Garcia-Amaya, global market strategist at J.P. Morgan Funds, in New York.

EBay's shares rose 3 percent to $54.50 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.

The S&P climbed above an intraday peak set in September to its highest since December 2007.

Gains were capped by weakness in the financial sector, with Bank of America (BAC) and Citigroup (C) down more than 2 percent following results.

Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.

Overall, S&P 500 corporate earnings for the fourth quarter are expected to see a 2.3 percent gain, Thomson Reuters data showed. Expectations for the quarter have moderated significantly since October.

With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.

Shares of Boeing (BA) extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. That comes in the wake of a series of other recent mishaps that have raised safety-related concerns about the aircraft. Boeing slipped 0.8 percent to $73.77 and is down nearly 2 percent for the week so far.